Prior to you sign your name to a solar panel lease on your home in Palm Desert CA 92261 you have to comprehend exactly what you are truly getting into. If you’re in the business of selling solar leases maybe you should attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are reading if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will read when they do 30 minutes of research online before dedicating to a 20 year contract. Possibly you’ll now understand why you get many cancellations and why if you don’t close the deal on the first consultation you’ve got almost no possibility of closing it later. Why not change your strategy do what’s right for the customer and get on board with a business that offers industry leading value (price + quality + service).
The Solar Lease in Palm Desert CA 92261 or PPA Sales Pitch typically consists of 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all of those month-to-month payments during the term of the contract you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Lots of zero money down solar loans are offered. If you have the credit score to qualify for the lease you can make use of the bank’s money to fund your solar system with absolutely no money down.
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2. No worries. The leasing/PPA company in Palm Desert CA 92261 is responsible for all repair and maintenance on the system.
The renting business will certainly not clean your photovoltaic panels which has to do with just maintenance used on a solar system. Solar systems are very low maintenance without any moving parts and include very long maker’s warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Many tier 1 solar equipment makers are larger and more financially stable than the solar leasing company by lots of multiples. Those long service warranties are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company guarantees the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping track of for the life of the system, making use of the very same tracking equipment utilized by the renting business.
5. Simply sign an agreement and the leasing business does everything else.
When purchasing a system you likewise simply sign an agreement and the solar professionals does everything else. Difference is the leasing companies contract is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t affect your financial obligation to earnings ratio.
This may be the only real benefit of the lease however it comes at an awefully high price. If this is among your major issues there are financing options for a purchase (PACE and HERO) that likewise don’t strike your personal credit or affect your debt to income ratio. And those programs enable virtually any homeowner to go solar no matter their credit score.
Now for the 6 main drawbacks to a solar lease in Palm Desert CA 92261 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are purchasing solar on your roofing system! You’re simply offering them a guaranteed 20 year capital!
2. Now you have 2 utility bills not just one! In essence the leasing company becomes a second utility. So, sign a solar lease and now you have two utility business you need to pay monthly.
3. A lot of leases or PPAs carry a yearly expense escalator, usually 2.9 %. So while you might be saving money today in a several years you will not be.
4. You will not have the ability to claim the 30 % federal tax credit and any relevant cash rebates. You likewise won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is settled you can get complimentary electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be problematic. Solar leases use the new owner to assume the lease and terms. If you check out any of the above you can probably see why an enlightened consumer would not want presuming the responsibilities of your lease. This is especially real if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the expense of electrical energy from the utility.